Buying new build from Persimmon using part exchange - any advice?

Dpc_2

Persimmon seem to be giving you a pretty good deal IMO, I would say generous offer for yours so far. 5% gift is a great help (but limits your mortgage options, speak to an IFA) and options whilst never cheap from the builder are always nice, use it for plumbing electrics and kitchens, all usually cheap for builder but expensive to do post completion.

badaz52

We Px'ed with TW, TW used our existing EA. We had to take less money for our house than it was worth, TW wouldn't budge on the list price of the new build and they wouldn't throw any extras in either citing "the burden of selling your property on after you have moved" they found a buyer before we had exchanged with them on the new build and our EA kept us out of the loop, we could have re-negotiated but were not given the chance and were locked out of negotiations on the new property and on our own!!

I wouldn't do a PX again as it's too one sided in favour of the developer and as they write the PX T&Cs they can be bent or broken as they see fit.

Persimmon's PX could be slightly different depending on the area and how much money they believe people have. We went with TW in cheshire and as there is a bit of money around they didn't see the need to negotiate on anything!

lukepugh

There are 3 developers all on the same site TW is one of them but we have ruled them out because their houses are overpriced. The other is Persimmon who have offered us a fair price on p/x and are also willing to give 5% gifted deposit. The 3rd is a local builder called Jelsons, it is the Jelson house we want but it seems unlikely that they can match the Persimmon offer..... There is a sales manager at their head office who should be calling us today with their offer. I think we are in a good position too negotiate but even if Jelsons can't match the deal we have been offered we will still go with Jelsons..... As long as their offer gives us enough to raise a decent deposit.

Sorry to hear other peoples problems with p/x.... I have read a lot of similar stories and we were not expecting an offer anything like what Persimmon have put to us, we just hope Jelsons can get close to it.....I will keep you updated.

lukepugh

Ok so Persimmon carried out another valuation, they called yesterday and offered 100k for our house + 5% deposit. Based on a sale price of 175k

Jelson called today and offered 100k p/x but only 3k towards deposit. But the sale price for their house is only 170k

Both offers leave us needing to mortgage the same amount.

We want the Jelson house but their offer means that with our savings we only have a 5% deposit.
We have decided to try for a mortgage with Skipton and should get an AIP tomorrow. If they offer us an AIP then we will go back to Jelsons to negotiate a few extras if we can before placing a deposit.

I think both Jelson and Persimmon have given us good offers... The EA that they both used told us that they would market our house at 105k .... This was before they new anything about us considering a p/x.

Fingers crossed that all goes well with Skipton!

GDB2222

Why not go back to Jelson and offer to pay another £5k for their house if they will pay another £5k for yours?

lukepugh

GDB2222 wrote: »

Why not go back to Jelson and offer to pay another £5k for their house if they will pay another £5k for yours?

We did think of this but are worried that it may cause issues with the valuation.
If the valuation comes back under what we paid and we have asked for the price to be inflated then we will not be able to renegotiate.
If we stick with the original purchase price and there is a problem with the valuation then we can ask Jelsons to drop the price.

I have read some horror stories on here about New build valuations and just hope that if we get to that stage that we don't have any issues. I genuinely think that the house that we want is worth 170k.

Contessa

Good luck with getting yourself a good deal!

lukepugh

Contessa wrote: »

Good luck with getting yourself a good deal!

Thanks, just got mortgage AIP with Skipton.
Not sure that we have got the best possible deal but we really want the house and are happy with Jelsons offer. Going to go and see the house again tomorrow and will try and squeeze a couple of little extras into the deal before putting down a deposit!

jimpix12

My opinion is that if you don't feel you are getting a good enough deal, and the house isn't (near enough) perfect to counter that, then walk away.

lukepugh

Bit of an update -
Skipton say that the deposit must come from us... this is fine because we have enough in savings to pay the deposit.... small problem is Jelsons offer was £100,000 p/x + £3,000 towards deposit.

Called Jelsons head office Friday and asked them to amend their offer to £103,000 p/x. They say no but they could pay stamp duty + legal fees instead which on a house of £170,000 is around £3,000.... Problem solved .... Jelson said they would draft a letter and send a copy to the site office so that they were aware of the offer.

Went to the site office to find the house we wanted had been sold an hour before we arrived! ... wife well and truly gutted and almost in tears!
Was sold to a retired couple who were cash buyers!

The house next door was still available so we had a look around.
The only difference is that the driveway and garage are raised slightly and the rear garden is tiered.
Spoke to the sales manager to ask what would be included and after a bit of discussion .....
Fitted kitchen, tile splash backs, tile floor, oven hob and extractor. Laminate flooring in the hallway. choice of carpets for living room and bedrooms. choice of flooring for bathroom and downstairs WC. Shower over bath, shower screen and full wall tiles around bath with tiled splash back above the sink. Outdoor lights. Turfed front lawn. Rear garden has steps and decorative rail fence between tiers. .... still to decide what to do with garden.... they can turf it all or part turf part gravel ... it is a big garden for a new build so we need to decide how we would like it over the next few days!

We put down a £300 deposit and have an appointment to apply for mortgage on Tuesday.... all being well we will exchange contracts in the 1st week of March and then complete in the 1st week of April!

I think we have got a good deal considering what is included in the price .... fingers crossed all goes well with the mortgage application!